How to Control Internal and External Salesforces

Abstract: To outsource a company's sales division by contracting external parties to perform activities usually performed in-house is a common consideration today. Previous research has established both advantages and disadvantages with outsourcing. However, there is limited research on the potential differences in organizational identification and motivation that may arise between an external and internal salesforce and its consequences on the sales control system in place. Through a single-case study, data was collected through interviews with management and a questionnaire with sellers to examine potential differences in organizational identification and motivation between the case company's internal and external salesforces. Furthermore, the aim was to examine the considerations management has to make when designing control systems for each salesforce in order to create goal congruence. The findings show that there are no significant differences in organizational identification and motivation between the internal and external salesforces. However, it is possible to establish a correlation between organizational identification and intrinsic motivation among the sellers, regardless of the salesforce they belong to. Based on the theoretical framework, we argue that this mainly has to do with the close and transparent relationship between the case company and the external sellers.